PAEZ, Circuit Judge:
Plaintiff Alex Corns, a now-retired member of Defendant Hod Carriers Local Union No. 166 ("Local 166"), filed this lawsuit under § 101(a)(3) of the Labor-Management Reporting and Disclosure Act ("LMRDA"), 29 U.S.C. § 411(a)(3), to challenge the legality of an organizing fee and a dues increase imposed on Local 166 members by the local union's umbrella labor organizations. Corns alleges that the labor organizations could not extract these fees without the approval of the Local 166 membership by a secret ballot vote, as provided in § 101(a)(3)(A). We hold that the plain text of the LMRDA authorizes a labor organization, other than a local labor organization or a federation of national or international labor organizations, to levy assessments or increase dues or initiation fees payable by its members by any of the procedures enumerated in § 101(a)(3)(B), provided that union members' rights are adequately protected in the approval process.
Because Defendant Laborers International Union of North America ("LIUNA") satisfied both prerequisites in this case, we conclude that it complied with the LMRDA when it enacted an organizing fee, applicable to all of its members working in the construction industry, following a majority vote of its delegates at a general convention. With respect to the dues increase approved by Defendant Northern California District Council of Laborers ("NCDCL"), however, we conclude that the NCDCL lacked the statutory authority to ratify such an increase because Local 166 members are not, by the express terms of the International Union and Uniform District Council constitutions, members of the NCDCL. Accordingly, we affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.
LIUNA is an international labor union that represents employees in the construction industry. The NCDCL functions as an intermediate body between LIUNA and fifteen Northern California local unions affiliated
We begin by describing the union hierarchy because our determination of the legality of the actions undertaken by LIUNA, the NCDCL, and Local 166 (collectively, "the Unions") requires an understanding of not only the Unions' organizational structure, but also the source and scope of their respective powers and obligations. LIUNA, which consists of the members of its affiliated local unions, derives its authority from the International Union Constitution. Int'l Union Const. art. I, § 1.
The NCDCL, a subordinate body created by LIUNA through a district council charter, "is charged with the responsibility to unify all of the economic and other forces of the affiliated Local Unions in its area, as a central representative body of such Local Unions." Unif. Dist. Council Const. art. II, § 1. Fifteen local unions in Northern California are affiliated with the NCDCL. As provided in Article XIX, § 5 of the International Union Constitution and Article I, § 2 and Article IV, § 1 of the Uniform District Council Constitution, the NCDCL's membership consists of delegates from its affiliated local unions.
Local 166, an affiliate of LIUNA and the NCDCL, exists for the purpose of "gathering under one banner all those that work at the craft and calling of said International Union, in accordance with the craft and territorial jurisdiction allotted to each Local Union by its charter." Unif. Local Union Const. art. I, § 1. Pursuant to the Uniform Local Union Constitution, Local 166 is authorized to establish rules, policies, and practices; collectively bargain with employers; and provide for the well-being and security of its members, officers, and employees through the establishment of insurance, health, and welfare benefit plans. Id. art. II, § 2. Local 166 is also empowered to raise income from dues, fees, and assessments payable by its members. Id. art. II, § 2(b). Like the Uniform District Council Constitution, the Uniform Local Union Constitution provides that dues and initiation fees shall be established and regulated by the NCDCL. Id. art. VIII, § 1. If, however, dues and initiation fees are not established by the district council, Local 166 is authorized to impose them by a secret ballot vote of the membership. Id. art. VIII, § 2.
Local 166 members' dues and fees are dictated by multiple collective bargaining agreements, some of which were negotiated by the NCDCL pursuant to its constitutional authority. When members work within San Francisco, San Mateo, Contra Costa, and Alameda counties, they work under collective bargaining agreements negotiated by their local union or the NCDCL ("the Local 166 Agreements"), or under collective bargaining agreements negotiated by Hod Carriers Local Union No. 36 ("Local 36").
Local 166 members' wages and dues rates vary depending on the applicable collective bargaining agreement. Generally, however, members pay union dues consisting of regular dues (sometimes referred to as "counter dues") in a fixed monthly amount; working dues (sometimes referred to as "dues check-off" or "supplemental dues") in an amount that corresponds with the hours each member works; and organizing fees in an amount that varies depending on the location of the work and the governing collective bargaining agreement. Individual employers withhold these dues and fees from Local 166 members' wages and, depending on the agreement, the deductions are remitted to either Local 166's Trust Funds or the NCDCL's Trust Fund.
Corns challenges the organizing fee approved at LIUNA's 2006 general convention.
In accordance with Resolution 12, the LIUNA organizing fee was incorporated into some of the collective bargaining agreements covering Local 166 members. Thus, although Local 166 members had not previously incurred an organizing fee for work performed in San Francisco and San Mateo counties, the 2008-10 San Francisco and San Mateo Masonry Agreement included an organizing fee of $0.16 per hour and the 2008-10 San Francisco and San Mateo Plastering Agreement included an organizing fee of $0.25 per hour.
Under three separate collective bargaining agreements covering work performed in Alameda and Contra Costa counties, Local 166 members paid separate fees used to fund Local 166 organizing efforts. Specifically, under the 2005-07 Alameda and Contra Costa Masonry Agreements, members paid an organizing fee of $0.60 per hour for work performed under these agreements. Meanwhile, the 2005-07 Alameda and Contra Costa Plastering Agreement provided for an organizing fee of $1.10 per hour for work performed under this agreement. The organizing fees were carried over into the renegotiated 2008-10 Alameda and Contra Costa Plastering and Masonry Agreements.
Corns also challenges dues increases included in the 2008-10 Local 166 Agreements, which included the San Francisco and San Mateo Masonry Agreement, the San Francisco and San Mateo Plastering Agreement, the Alameda and Contra Costa Masonry Agreement, the Alameda and Contra Costa Commercial Plastering Agreement, and the Alameda and Contra Costa Residential Plastering Agreement. At a general meeting held on June 20, 2008, the NCDCL approved the 2008-10 Agreements, all of which included wage and dues increases. The agreements went into effect on July 1, 2008.
After receiving notice of the increases, Corns wrote LIUNA's general president to express his concern about the imposition of a dues increase absent a secret ballot vote of the local membership. The following day, the NCDCL's executive board proposed that a special convention be held on September 19, 2008 to consider the dues increase included in the 2008-10 Local 166 Agreements. The proposal was presented to and approved by the NCDCL's general delegates at a meeting held on that same date.
Although the 2008-10 Local 166 Agreements had already been ratified by the NCDCL, the agreements were presented to Local 166 members at a general board meeting on June 26, 2008. Corns objected, requesting that a standing vote count of the membership be taken to approve the new agreements. A majority of Local 166 members voted in favor of the 2008-10 Local 166 Agreements by a standing vote.
Corns wrote a letter to LIUNA objecting to the increases approved at the NCDCL special convention. LIUNA's general president responded to Corns on March 13, 2009, explaining that LIUNA took the position that Local 166's dues were properly increased in accordance with the Uniform District Council and Uniform Local Union constitutions.
Corns then filed this lawsuit, seeking damages for the increased dues and organizing fees deducted from his wages as a member of Local 166, a declaration prohibiting the NCDCL from exercising its power to impose dues increases in accordance with the Uniform District Council and Uniform Local Union constitutions, and injunctive relief. The parties filed cross-motions for summary judgment. In denying Corns's motion for partial summary judgment and granting the Unions' motion, the district court concluded that § 101(a)(3) of the LMRDA provides alternative methods for levying assessments and increasing dues, and requires a secret ballot vote of the local membership only when a local labor organization imposes an assessment or dues increase. Because LIUNA and the NCDCL are not local labor organizations, the district court concluded that they validly approved the organizing fee and the dues increase following a majority vote of their delegates at a regular convention and a special convention, respectively, in accordance with § 101(a)(3)(B)(i).
We review de novo a district court's grant of summary judgment. Walls v. Cent. Contra Costa Transit Auth., 653 F.3d 963, 966 (9th Cir.2011). Summary judgment is appropriate when, viewing the evidence in the light most favorable to the non-moving party, no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Id. We draw all reasonable inferences in the light most favorable to the moving party, but "[c]onclusory, speculative testimony in affidavits and moving papers is insufficient to raise genuine issues of fact and defeat summary judgment." Soremekun v. Thrifty Payless, Inc., 509 F.3d 978, 984 (9th Cir.2007).
The LMRDA "was the product of congressional concern with widespread abuses of power by union membership." Finnegan v. Leu, 456 U.S. 431, 435, 102 S.Ct. 1867, 72 L.Ed.2d 239 (1982). Although the initial "legislation focused on disclosure requirements and the regulation of union trusteeships and elections," Congress subsequently adopted numerous amendments "all aimed at enlarged protection for members of unions paralleling certain rights guaranteed by the Federal Constitution." Id. The amendments created a statutory "Bill of Rights" "specifically designed to promote the `full and active participation by the rank and file in the affairs of the union.'" Hall v. Cole, 412 U.S. 1,
The issues raised here primarily concern § 101(a)(3), a rarely invoked provision of Title I of the LMRDA, governing the imposition of dues, initiation fees, and assessments by labor organizations.
Because the parties dispute whether § 101(a)(3)(A) or (B) applies in this case, we must address the threshold issue of statutory construction. In interpreting the meaning of § 101(a)(3), we first consider the plain text of the statute. Washington v. Chimei Innolux Corp., 659 F.3d 842, 847 (9th Cir.2011). In doing so, "[w]e examine not only the specific provision at issue, but also the structure of the statute as a whole, including its object and policy." Id. at 847-48 (quoting Children's Hosp. & Health Ctr. v. Belshe, 188 F.3d 1090, 1096 (9th Cir.1999)).
As the introductory paragraph explains, § 101(a)(3) does not apply to a federation
Subsection (A) provides that when a local labor organization seeks to increase dues or initiation fees or levy assessments, it must first obtain the approval of the majority of its members in good standing. Id. § 411(a)(3)(A). This approval always necessitates a secret ballot
Subsection (B), meanwhile, applies to dues or initiation fees increases or assessments imposed on members of a labor organization, "other than a local labor organization or a federation of national or international labor organizations." 29 U.S.C. § 411(a)(3)(B) (emphasis added). Under subsection (B), labor organizations, such as international unions, are authorized to increase dues or initiation fees or levy assessments by one of several methods, including by a majority vote of delegates at a regular or special convention. Id. This, too, comports with the objectives of the LMRDA, which we have concluded was not intended to infringe international unions' traditional authority to establish local unions' rates of dues. See Mori v. Int'l Bhd. of Boilermakers, Local 6, 653 F.2d 1279, 1283 (9th Cir.1981). In this
Reading these provisions together, and taking into account the LMRDA's objectives and policy, we conclude that subsections (A) and (B) provide alternative methods for increasing dues or initiation fees or levying assessments. See Davis v. Mich. Dep't of Treasury, 489 U.S. 803, 809, 109 S.Ct. 1500, 103 L.Ed.2d 891 (1989) (explaining that "[i]t is a fundamental canon of statutory construction that the words of a statute must be read in their context and with a view to their place in the overall statutory scheme."). In particular, we note Congress' use of the word "or" to separate the two subsections, which we interpret as taking its "ordinary, contemporary, common meaning." Perrin v. United States, 444 U.S. 37, 42, 100 S.Ct. 311, 62 L.Ed.2d 199 (1979). "In its elementary sense, the word `or,' as used in a statute, is a disjunctive particle indicating that the various members of the sentence are to be taken separately." 73 Am.Jur. 2d Statutes § 147 (2012).
Although we conclude that the plain text of the LMRDA controls our analysis, we also find support for our interpretation in the existing case law. In Ranes v. Office Employees International Union, Local No. 28, for example, the plaintiffs argued that a local union could not increase dues in accordance with the international union's constitutional amendment raising the minimum dues requirement without a secret ballot vote of the local membership. 317 F.2d 915, 916 (7th Cir.1963). The Seventh Circuit held that the international union complied with the LMRDA when it increased the constitutional minimum for dues payable by its members to their respective local unions following the approval of the increase by a majority of delegates voting at its regular convention. Id. at 916-17. The Seventh Circuit observed that, although a local union must obtain a majority vote of its members under subsection (A), "subsection (B) prescribes alternative methods by which an international union may increase `rates of dues.'" Id. at 917 (emphasis added). In so concluding, the court explained:
Id. at 917-18 (footnotes omitted). Recognizing that the purpose of § 101(a)(3) is to protect union members' rights, the Seventh Circuit further concluded that members' rights are adequately protected when they "have representation at the council table where dues structures are changed." Id. at 918.
Relying in part on the reasoning in Ranes, we held that the LMRDA authorized an international union to increase the dues imposed on field construction members in its affiliated local unions by approving the dues structure by a majority of delegates voting at a convention of the international union. Mori, 653 F.2d at 1285. We found support for the Seventh Circuit's approach in a subsequently decided Supreme Court case, in which the Court concluded that the LMRDA was not intended to disrupt the established union practice of weighted voting. Id. at 1283 (quoting Wittstein, 379 U.S. at 178, 85 S.Ct. 300). As a result, we adopted the Seventh Circuit's interpretation of the LMRDA and endorsed "two considerations supportive of an international's power to establish minimum local dues: legislative intent [to preserve international unions' traditional authority to establish rates of dues] and adequate protection of union members' rights." Id.
With respect to the first consideration, we agreed that Congress did not intend to curb international unions' traditional power to establish local unions' rates of dues. Id. at 1284. Addressing the second consideration, we noted "the participation of delegates representing plaintiffs ensured their rights under [§] 101(a)(3)(B)," and concluded that "there [was] no reason in this case to distrust the democratic process at work at the convention." Id. at 1285. Although the dues increase applied to only "a minority within the international," id. at 1284, we concluded that the international union's efforts did "not reflect an attempt on the part of a majority of the international to exploit or discriminate against the minority of construction workers," id. at 1285. "Instead, the convention's action appear[ed] to reflect the judgment of the majority concerning the measures necessary to enhance the vitality of the construction lodges." Id. We also found it significant that the funds collected under the new dues structures would "be retained by the local construction lodges for their own benefit." Id. at 1284.
In light of the plain text of the statute and the LMRDA's purposes, we hold that § 101(a)(3)(A) and (B) establish alternative methods by which labor organizations are authorized to increase dues or initiation fees or to levy assessments on their members, subject to the explicit restrictions in the statute. In other words, the LMRDA requires that, prior to increasing dues or initiation fees or levying assessments, a local union must always obtain the majority approval of its members in good standing by a secret ballot vote. 29 U.S.C. § 411(a)(3)(A). The statute, however, concurrently permits any other labor organization, except for the excluded categories set forth in the provision, to impose an identical dues or fees increase or assessment by any of the methods provided in § 101(a)(3)(B), including by majority delegate approval at a general or special convention. Id. § 411(a)(3)(B); see also Mori, 653 F.2d at 1285 (permitting an international union to impose a dues increase
Resolution 12, which was adopted by a majority of LIUNA's delegates voting at a regular convention, provided, in relevant part, "that every Local Union having jurisdiction in the construction industry shall pay $.25 per hour, to be phased in over three years[.]" Corns argues that LIUNA violated § 101(a)(3)(A) of the LMRDA by approving Resolution 12 without a secret ballot vote of the local unions' membership. We disagree.
Because LIUNA is an international union, its approval of Resolution 12 is governed by subsection (B), not subsection (A), of § 101(a)(3) of the LMRDA. As explained above, the LMRDA authorizes an international union to increase dues or initiation fees or levy an assessment payable by its members provided that it satisfies § 101(a)(3)(B)'s requirements and it adequately protects the rights of union members in the approval process. 29 U.S.C. § 411(a)(3)(B); see also Mori, 653 F.2d at 1285. There is no dispute that, under Article I, § 1 of the International Union Constitution, the members of LIUNA's affiliated local unions are also members of the international union. Therefore, LIUNA is statutorily empowered to impose financial obligations on local union members. The international union also complied with the LMRDA by adopting Resolution 12 by one of the procedures explicitly authorized under § 101(a)(3)(B) — approval by a majority of LIUNA's delegates voting at a regular convention. 29 U.S.C. § 411(a)(3)(B)(i). And, notably, Corns does not assert that any procedural irregularity occurred, or that union members' rights were not adequately protected in the voting process. See Mori, 653 F.2d at 1284-85.
Although the organizing fees are not retained by local unions, as they were in Mori, the funds are used to increase union membership in the district councils' regional jurisdictions. Such efforts directly benefit LIUNA's affiliated local unions by adding new members to their ranks. Thus, we conclude that LIUNA satisfied the LMRDA's requirements when it adopted the $0.25 per hour organizing fee
Corns further argues that even if the adoption of Resolution 12 did not contravene the LMRDA's requirements, the implementation of the organizing fee was nonetheless deficient in several respects. First, Corns argues that the organizing fees included in the 2008-10 Local 166 Agreements exceeded the amount authorized by Resolution 12. The organizing fees added to the 2008-10 San Francisco and San Mateo Masonry and Plastering Agreements, $0.16 and $0.25 per hour, respectively, are plainly within the maximum rate authorized by Resolution 12. The organizing fees provided for in the 2008-10 Alameda and Contra Costa Masonry and Plastering Agreements, $0.60 and $1.10 per hour, respectively, similarly do not exceed the $0.25 per hour organizing fee approved by LIUNA because they represent independent financial obligations imposed by Local 166. Organizing fees in identical amounts were deducted from Local 166 members' wages under the 2005-07 Alameda and Contra Costa Agreements. Because there was no increase from the 2005-07 Alameda and Contra Costa Agreements, the organizing fees included in the 2008-10 Alameda and Contra Costa Agreements do not exceed the amount approved at LIUNA's general convention. Rather, the $0.60 and $1.10 organizing fees are properly characterized as preexisting financial obligations imposed by Local 166 on its own members to fund Local 166 — not regional — organizing efforts.
Next, Corns argues that the district court erred in granting summary judgment with respect to the validity of the organizing fees provided for in the Alameda and Contra Costa Agreements because a factual dispute remains as to whether there was ever a valid secret ballot vote to approve these fees. Stated differently, Corns argues that, absent evidence of a prior secret ballot vote of Local 166 members, the inclusion of the organizing fees in the 2008-10 Alameda and Contra Costa Agreements constituted a continuing violation of the LMRDA. We conclude that Corns waived this argument by failing to raise it in the district court, and we accordingly decline to address it. In re Mercury Interactive Corp. Sec. Litig., 618 F.3d 988, 992 (9th Cir.2010).
Third, Corns argues that Resolution 12 requires that local unions — not their members — pay the organizing fees. Under the "financial burden" test, "[w]hether there has been an increase in dues must be determined not by who imposed the exaction but by the nature of the imposition and its direct effect upon the financial burden of the individual members." King v. Randazzo, 234 F.Supp. 388, 394 (E.D.N.Y.1964); see also Patterson v. United Bhd. of Carpenters, 906 F.2d 510, 513 (10th Cir.1990) (indicating that several circuits have approved the "financial burden" test). Unlike a dues increase,
King, 234 F.Supp. at 394. In King, the district council explicitly referred to the payment as a "per capita tax" in the applicable constitutional provision. Id. at 390. Applying the "financial burden" test, the
We recognize that the "financial burden" test was formulated to prevent labor organizations from circumventing the LMRDA's requirements by classifying a financial obligation as a per capita tax, which is not governed by the LMRDA, when, in reality, it functions as a dues increase on union members, which triggers § 101(a)(3)'s requirements. Seybert v. Lowen, 623 F.2d 780, 784 (2d Cir.1980) (explaining that the "financial burden" test was intended to distinguish "`true' per capita taxes from devices that, although labeled as `per capita taxes,' actually were disguised dues increases which labor organizations sought to impose on their members without the necessity of first complying with the procedures mandated by 29 U.S.C. [§] 411(a)(3)"); Ranes, 317 F.2d at 918. In adopting Resolution 12, however, LIUNA complied with the LMRDA's requirements and there is consequently no evidence that it sought to undermine the democratic processes protected by the statute. Thus, there is no basis for interfering with LIUNA's implementation of a properly enacted organizing fee. Teamsters Joint Council No. 42 v. Int'l Bhd. of Teamsters, 82 F.3d 303, 306 (9th Cir.1996) (acknowledging the "well-established federal policy of avoiding unnecessary interference in the internal affairs of unions" and cautioning courts that, absent evidence of bad faith or special circumstances, they "must be careful not to undermine union self-government"); Reich v. Local 89, Laborers' Int'l Union of N. Am., 36 F.3d 1470, 1476 (9th Cir. 1994) (noting the countervailing policy of the LMRDA that "unions should be free to conduct their affairs so far as possible and the government should not become excessively involved in union politics").
Finally, Corns contends that the district court erred in granting the Unions' motion for summary judgment because the record does not demonstrate that the organizing fees collected under Resolution 12 were paid, in full, to the NCDCL's regional organizing fund, as opposed to Local 166. Having reviewed the record, we conclude that Corns provided insufficient evidence to demonstrate that a genuine issue of material fact exists as to whether the organizing fees are remitted in their entirety to the NCDCL's regional organizing fund.
Accordingly, we conclude that LIUNA complied with the LMRDA when it enacted an organizing fee payable by local union members by approving the fee by a majority of its delegates voting at a general convention. Because LIUNA properly implemented the organizing fee, the district court did not err in rejecting Corns's challenge to the collection of this fee.
Corns also contends that the NCDCL lacked the statutory authority to increase Local 166 members' dues by a majority delegate vote at a special convention. According to Corns, the NCDCL is only permitted to increase the dues of its own members, who, in this case, consist of the district council's fifteen affiliated local unions or the delegates from these local unions. The Unions, on the other hand, assert that the Uniform District Council and Uniform Local Union constitutions, which are binding on Local 166 members, empower the NCDCL to impose dues increases on members of affiliated local unions. In light of the plain text of the International Union Constitution and the
To properly impose a dues increase, the NCDCL, which is not a local labor organization, must comply with the requirements set forth in § 101(a)(3)(B) of the LMRDA. 29 U.S.C. § 411(a)(3)(B). The statute only permits a labor organization to impose a financial extraction, such as a dues increase, on its own members. Id. § 411(a)(3). As explained above, under the LMRDA, a "member" "when used in reference to a labor organization, includes any person who has fulfilled the requirements for membership in such organization, and who neither has voluntarily withdrawn from membership nor has been expelled or suspended from membership after appropriate proceedings consistent with lawful provisions of the constitution and bylaws of such organization." Id. § 402(o). We therefore look to the NCDCL's constitution and bylaws to determine who is a member of the labor organization.
The International Union and Uniform District Council constitutions explicitly define the membership of district councils, such as the NCDCL, as the delegates from affiliated local unions, who have been elected in the manner and number provided for in the Uniform District Council Constitution. Int'l Union Const. art. XIX, § 5; Unif. Dist. Council Const. art. I, § 2, art. IV, § 1. Yet, the Unions urge us to adopt the district court's reasoning that Local 166 members are in substance members of the NCDCL because they are bound by the constitution and bylaws of all of the labor organizations in the union hierarchy. They argue that Local 166 members are effectively members of the NCDCL because they are bound by the terms of the Uniform Local Union Constitution, which in turn obligates members of Local 166 to abide by the International Union and Uniform District Council constitutions. Because Article II, § 2(e) and Article VIII, § 2 of the Uniform District Council Constitution and Article VIII, § 1 of the Uniform Local Union Constitution delegate the authority to establish and regulate dues and initiation fees to the NCDCL, the Unions contend that the NCDCL is authorized to impose dues increases payable by members of local unions.
Although we remain mindful of "the well-established federal policy of avoiding unnecessary interference in the internal affairs of unions and according considerable deference to the interpretation and application of a union's rules and regulations," Sergeant v. Inlandboatmen's Union of the Pac., 346 F.3d 1196, 1200 (9th Cir. 2003), we cannot adopt a position that so plainly conflicts with the express language of the constitutional provisions defining the NCDCL's membership. Cf. Motion Picture & Videotape Editors Guild, Local 776 v. Int'l Sound Technicians, Local 695, 800 F.2d 973, 976 (9th Cir.1986) ("Absent a specific limitation in a union constitution, this court will not interfere with the efforts of a union's leaders to manage the affairs of their organization."). In addition to the provision addressing the composition of the NCDCL, we also note that the membership qualifications and obligations delineated in the Uniform District Council Constitution, which are relevant under the LMRDA for purposes of defining a labor organization's membership, apply to union delegates, not individual union members.
In so concluding, we agree with the Unions that Local 166 members must conform and comply with all of the Unions' constitutions. See Imel v. Zohn Mfg. Co., 481 F.2d 181, 183 (10th Cir.1973) (concluding that local union members are bound by the constitutions and bylaws of the local union's umbrella organization). But, the mere fact that Local 166 members are bound by the constitutions and bylaws of all of the labor organizations in the Unions' hierarchy is not sufficient to bring them within the definition of "member" for purposes of the LMRDA. In light of these considerations, we reject the Unions' circuitous approach of defining the NCDCL's membership by cobbling together other constitutional provisions concerning the NCDCL's powers and the obligations of its affiliated unions. Instead, we rely on the express provisions in the International Union and Uniform District Council constitutions defining membership.
We do not speculate whether the NCDCL, if it were to amend its constitution, could impose a dues increase on the members of only one of its affiliated local unions. We hold only that, although we generally accord deference to a labor organization's interpretation of its own policies and provisions, there is no justification for an interpretation that squarely conflicts with the plain text of its constitutions and bylaws. We therefore conclude that the NCDCL violated § 101(a)(3) of the LMRDA when it imposed a dues increase on Local 166 members.
In light of the plain text of § 101(a)(3)(B) and our holding in Mori, we conclude that LIUNA complied with the LMRDA when it approved an organizing fee payable by Local 166 members by a majority vote of its delegates at a general convention. We further conclude that the NCDCL lacked the statutory authority to impose a dues increase on Local 166 members because they are not also members of the NCDCL. Accordingly, the district court's grant of summary judgment is affirmed in part, reversed in part, and remanded for further proceedings consistent with this opinion.
BYBEE, Circuit Judge, concurring in the judgment:
Although I concur in the judgment, I write separately to express my differing views about the proper interpretation of § 101(a)(3) of the Labor-Management Reporting and Disclosure Act ("LMRDA" or "Act"), 29 U.S.C. § 411(a)(3).
The language of § 101(a)(3) is ambiguous — it is not "plain," in spite of the majority's claim to the contrary, Maj. Op. at 910
As I read the Act, the dues increase imposed on members of Local 166 by delegates to the NCDCL violated the LMRDA regardless of the specific terms of the NCDCL constitution discussed by the majority. My interpretation of the statute also leads to the result that the organizing fee approved in Resolution 12 did not violate the LMRDA, a result the majority also reaches based on its interpretation of the LMRDA. Though I reach the same conclusions as the majority, I cannot endorse the majority's reasoning.
The core dictate of § 101(a)(3) is that "the rates of dues and initiation fees payable by members of any labor organization... shall not be increased, and no general or special assessment shall be levied upon such members." In other words, the stated purpose of the Act is to protect union members against increases in due and fees. This core dictate is — awkwardly — sandwiched between two "except clauses," the second of which has two parts. In effect, there are three exceptions to the rule that members' dues and fees shall not be increased.
The first exception, provided in the opening words of § 101(a)(3), is for "the case of a federation of national or international labor organizations." This section of the LMRDA imposes no further conditions on the actions of a federation of national or international labor organizations. At least as far as § 101(a)(3) is concerned, a levy governed by this exception appears to be lawful regardless of the method followed for approving the levy. The two other exceptions, provided in subsections (A) and (B), are for "the case of a local labor organization" and "the case of a labor organization, other than a local labor organization or a federation of national or international labor organizations," respectively. Subsections (A) and (B) describe particular procedures that must be followed in approving increases in dues and fees. Structurally, the three exceptions combine to cover the full universe of labor organizations — "a federation of national or international labor organizations," "a local labor organization," and "a labor organization other than a local labor organization or a federation of national or international labor organizations."
Only subsections (A) and (B) are at issue in this case. These provisions are less than clear and may be read in a couple of ways. The majority reads (A) and (B) as describing the methods by which different classes of unions may raise dues and fees on "any labor organization."
Similarly, the majority would read (B) as though it began:
For the majority, (A) and (B) are grants of power to the unions. They are "alternative methods for increasing dues or initiation fees or levying assessments." Maj. Op. at 910. The majority would read (B) to authorize, for example, a regional, national, or international union to raise the dues and fees of a subset of the members of that union so long as it followed the procedures set forth in (B), and the majority does not temper its view of subsection (B) with an equality or uniformity principle. It is one thing to argue that an international union may raise local dues generally, or even raise dues on a certain subset of members that spans many local unions; it is quite another to claim that the international may single out a local union and raise its local dues over the objection of the local's members. The majority's untempered "alternative methods" theory allows (B) to facilitate an end-run around a local whose members do not want a dues increase, but whose leaders do, or worse yet, whose leaders do not have the voting power to overcome the will of an umbrella labor organization. An umbrella organization could even potentially use such an end-run to punish a local by raising its dues.
Although the majority's reading is plausible, I do not think this is the best reading of the statute. I read these sections to protect union members against undemocratic efforts to raise their dues and fees, not to enable the "international unions[]... to establish local unions' rates of dues" without regard for equality or uniformity. Maj. Op. at 909. I would read § 101(a)(3)(A) as though it began:
Similarly, I would read subsection (B) as if it began:
Under my reading, a union may levy dues and fees only on its own members by following the procedures set forth in (A) and (B). Nothing in § 101(a)(3) authorizes an umbrella labor organization to single out a local and raise the dues or fees of the local's members. Section 101(a)(3) may allow an umbrella organization to levy dues and fees on its own members, and perhaps even a subset of its members; but at the very least, § 101(a)(3) prevents such a levy from being imposed only on the members of a single subsidiary union.
Similarly, it is only natural to read the exception in subsection (B) for "the case of a labor organization, other than a local labor organization or a federation of national or international labor organizations" as qualifying the core dictate's general prohibition on levies payable by members of those unions. Thus, subsection (B) dictates the approval methods that must be followed in order for a levy payable by members of a "labor organization, other than a local labor organization or a federation of national or international labor organizations," to be lawful under § 101(a)(3). If anything, subsection (B) is even more clear than subsection (A) because it identifies the "members" to be involved in the voting. Each voting option under subsection (B) calls for a vote among members or representatives of "such labor organization," which logically must refer back to the labor organization whose members will be paying the levy. As the Tenth Circuit explained, subsection (B) "makes it clear that the increased dues must be enacted by the relevant body `of such labor organization,' that is the organization whose members will be required to pay the increased dues." Patterson v. United Bhd. of Carpenters & Joiners of Am. AFL-CIO, 906 F.2d 510, 515 (10th Cir.1990).
In sum, subsection (A) prescribes the required voting methods for the lawful approval of a levy payable by members of a local labor organization, and requires majority approval of the members of the local labor organization voting by secret ballot; and subsection (B) prescribes the required voting methods for the lawful approval of a levy payable by members of a labor organization other than a local labor organization or a federation of national or international labor organizations, and requires no secret ballot. The subsections are symmetrical and preserve the rights of union members to vote directly on any dues increases or, under subsection (B), at least to be equitably represented before any dues are levied on them. An international union can impose due and fees on its international members, a regional union on its regional members, and a local union on its members. This outcome is respectful of principles of equality and uniformity that are disregarded by the majority's approach.
My reading of § 101(a)(3) set forth above is supported by Congress's broad
As the majority notes, and as we have previously recognized, the purpose of § 101(a)(3) specifically "`is to curb the potential for autocratic and unrepresentative rule of union officers by preventing the leadership of a union from imposing arbitrary financial extractions unilaterally on its membership.'" Maj. Op. at 908 (quoting Burroughs v. Operating Eng'rs Local Union No. 3, 686 F.2d 723, 728 (9th Cir. 1982)). "Section 101(a)(3) was designed to vest control over increases in rates of dues in the union members, not the union management." Burroughs, 686 F.2d at 728. It thus "guarantee[s] a member's `right to participate in deciding upon the rate of dues, initiation fees, and assessments.'" Am. Fed'n of Musicians v. Wittstein, 379 U.S. 171, 181, 85 S.Ct. 300, 13 L.Ed.2d 214 (1964) (quoting H.R.Rep. No. 741, at 7 (1959)). Judge Posner has described § 101(a)(3) as "intended to ensure that dues or assessments are not levied by unrepresentative union leaders," and as "intended to bar taxation without representation." Michelotti v. Air Line Pilots Ass'n, 61 F.3d 13, 15 (7th Cir.1995); see also Burroughs, 686 F.2d at 730 (describing a situation in which union leadership had the power to decide whether or not the dues of local union members would be increased, without submitting the matter to a vote of the local union's members, as "a result ... Congress intended to prohibit when it enacted section 101(a)(3)").
These principles were violated when members of Local 166 — and no one else — had their local dues increased by the NCDCL following a vote at a convention of sixty delegates only two of whom were Local 166 members. Though it is true that Local 166 was minimally represented at the convention that raised its dues, it is hard to say that an interpretation of § 101(a)(3) that allows such uneven "taxation" from above is supported by the policy of "ensur[ing] that dues or assessments are not levied by unrepresentative union leaders." Michelotti, 61 F.3d at 15. Rank and file members of Local 166 are not full and active participants in their own union affairs if they do not get to vote whether to increase their own dues, but are subject to the votes of members of other local unions, whose dues are not at risk. The right to democratic control over such levies is one of the rights guaranteed by the LMRDA
The democratic principles behind the LMRDA are reflected in my interpretation of § 101(a)(3), which requires local union members to approve their own dues increases. And these principles would be violated by a reading that would permit a regional labor organization to raise the dues of one local, while maintaining a lower assessment for everyone else. This point was previously recognized by the district court in White v. Local 207, which said that "[a] holding that a district convention could set local dues for one single local union would be to completely sterilize the provisions of [§ 101(a)(3)(A)]." 387 F.Supp. 53, 56 (W.D.La.1974). A regional union such as the NCDCL may no more raise the dues of a single local union than Congress may tax the citizens of one state at a higher rate than citizens of other states. Cf., e.g., U.S. Const. art. I, § 8, cl. 1 ("[A]ll Duties, Imposts and Excises shall be uniform throughout the United States."); id. art. I, § 9, cl. 6 ("No Preference shall be given by any Regulation of Commerce or Revenue to the Ports of one State over those of another....").
The majority characterizes its reading of the statute as balancing the democratic principles underlying the LMRDA with "umbrella labor organizations' interest in self-governance," noting parenthetically that "Congress meant to further the LMRDA's basic policy of promoting democratic union governance `with a minimum of interference in the internal affairs of unions.'" Maj. Op. at 910 (quoting Crowley, 467 U.S. at 539, 104 S.Ct. 2557). Such balance is not lost in my interpretation of the statute, as § 101(a)(3) still offers various lawful approval methods under each of subsection (A) and subsection (B). By contrast, the union members' "Bill of Rights" is of no value if it can be trumped so easily by the majority's "hands off" principle.
My reading is also fully consistent with our prior reading of § 101(a)(3), while the majority's position outflanks anything that our court, or any other court, has previously approved. Although § 101(a)(3) has not commanded much judicial attention, we previously construed it in Mori v. International Brotherhood of Boilermakers, 653 F.2d 1279 (9th Cir.1981). In Mori, we held that the LMRDA authorized an international union to establish minimum dues for members of the international union who worked in the construction trade by a majority vote of delegates at the convention of the international union under subsection (B) of § 101(a)(3). Id. at 1284-85. This decision might be understood as endorsing the position that subsection (B) generally allows any "labor organization, other than a local labor organization or a federation of national or international labor organizations," to increase the local dues of any subset of that labor organization's members in any manner approved by a majority of delegates at a convention of the labor organization, including any increase imposed on a subset consisting only of the members of one affiliated local union. See Maj. Op. at 909-12, 916. Our decision in Mori, however, was not so broad.
In Mori we considered whether an international union could establish minimum dues "for a single craft within affiliated local unions." Mori, 653 F.2d at 1280. We approved the dues increase for "field construction members" who belonged to various unions within the international; the increase did not affect the dues of other members of the locals. Id. at 1281. The increase "affect[ed] neither a single
In a pre-Mori case, Ranes v. Office Employees International Union, the Seventh Circuit approved local dues increases enacted by an international union consistent with the procedures required by § 101(a)(3)(B). 317 F.2d 915, 916, 918 (7th Cir.1963). But those increases were across-the-board increases applicable to every local union in the international. Id. at 916. The international union could have accomplished the same thing by raising its own fees and remitting the funds raised to the locals. The Seventh Circuit recognized that the international had "acted lawfully within a traditional sphere of its power to control its affiliated local unions." Ranes, 317 F.2d at 918. Nothing in Ranes, however, sanctions an international singling out one local and increasing its dues. See id. at 918 n. 6 ("The provisions of (A) govern the dues structure of independent company and unaffiliated local unions, and should apply, as well, to increases in the dues charged by affiliated locals above the constitutional minima prescribed by their parent unions.").
As the Tenth Circuit explained in Patterson v. United Brotherhood of Carpenters & Joiners of America AFL-CIO, my reading of the statute is consistent with both Ranes and Mori. In Patterson, the Tenth Circuit held that an international union could not lawfully establish minimum dues for the seven local unions affiliated with an umbrella district council. 906 F.2d at 512-15. In so holding, the court asserted that subsection (B) of § 101(a)(3) "makes it clear that the increased dues must be enacted by the relevant body of... the organization whose members will be required to pay the increased dues," id. at 515 (internal quotation marks omitted), a reading of subsection (B) that is consistent with my interpretation. The Patterson court concluded that its reading was consistent with Ranes and Mori. As the Patterson court explained:
Moreover, our case is also distinguishable from Mori in a manner in which Patterson was not. Patterson, like Mori, involved the imposition of a dues increase by an international labor organization. Here, by contrast, the dues increase in question was imposed by a district council. This may not be relevant when it comes to the language of § 101(a)(3), under which both international unions and district councils fall under subsection (B)'s category of "labor organization[s], other than a local labor organization or a federation of national or international labor organizations." It is, however, relevant when considering the extent to which Mori controls our inquiry. In Mori, we based our approval of an international labor organization's imposition of minimum dues applicable only to members in a certain craft, across all affiliated local unions, on the fact that "an international's setting of local dues is part of `traditional structures and practices,'" combined with "the Supreme Court's intimation... that traditional practices are relevant to an interpretation of the Act." Mori, 653 F.2d at 1284 (quoting Ranes, 317 F.2d at 917). In Mori, this court had been presented with substantial evidence of the traditional practice of international labor organizations playing a role in setting dues for affiliated locals. Id. at 1283-84. This traditional practice, which was arguably also relevant in Patterson to a dues increase imposed by an international union on members of several local unions, is not relevant to our analysis of the imposition of dues on members of a local labor organization by a district council rather than an international labor organization.
Finally, in Mori, we recognized that, in cases where a labor organization is imposing a levy on a minority of its members, it is relevant whether there is any "reason to distrust the democratic process at work." Mori, 653 F.2d at 1285. In finding no reason to distrust the democratic process in Mori, we relied on (1) the fact that the increased dues would be retained by local construction lodges for their own benefit; (2) the representation of members of the construction trade by delegates at the convention of the international labor union that approved the dues; and (3) the lack of anything in the record demonstrating that the majority of the international union was seeking to exploit a minority. Id. at 1284-85. Here, at the very least, the fact that only two of the sixty delegates who approved the dues increase represented the members of Local 166 who would bear the full brunt of the increase provides ample reason to distrust the democratic process at work. The LMRDA protects union members from such abuses.
In the instant case, the organizing fee approved in Resolution 12 did not violate the LMRDA. The organizing fee was a levy imposed upon the members of an international labor organization (the Laborers International Union of North America, or LIUNA), and thus was lawful as long as the method of approval comported with subsection (B) of § 101(a)(3). One of the allowable methods under subsection (B) is "a majority vote of the delegates voting at a regular convention, or at a special convention of such labor organization held upon not less than thirty days'
The dues increase imposed on members of Local 166 by the NCDCL, on the other hand, violated the statute. The dues increase was imposed only on members of Local 166, a local labor organization, and thus required approval via one of the methods dictated by subsection (A) of § 101(a)(3), each of which require a secret ballot vote of the members of Local 166. No secret ballot vote was taken of the members of Local 166, so the dues increases was not lawful. The majority comes to the same conclusion, but bases its decision on the fact that, under the NCDCL constitution, the "members" of the NCDCL are the delegates from the affiliated local unions rather than the members of the local unions. Maj. Op. at 914-16. I offer no comment on the validity of this rationale for the majority's holding. Even if the members of Local 166 are in fact members of the NCDCL, because the exception covering levies payable by members of the smaller labor organization — and not also the exception governing levies payable by members of the larger umbrella labor organization — governs, the dues increase was not lawful.
Section 101(a)(3) of the LMRDA is best read as requiring the members of a local labor organization to approve in a secret ballot all dues and fees increases applicable only to them. The LMRDA was enacted to protect rank and file union members from undemocratic union decisionmaking. The dues increase imposed on Local 166 in this case was approved in a manner that does not reflect this purpose. The majority reached the right conclusion, but its interpretation of § 101(a)(3) is problematic and will result in the acceptance of undemocratic labor processes in future cases. I can only concur in the judgment.
29 U.S.C. § 411(a)(3).
29 U.S.C. § 411(a)(3).
Archibald Cox, Internal Affairs of Labor Unions Under the Labor Reform Act of 1959, 58 Mich. L.Rev. 819, 852 (1960); see also Usery v. Local Union No. 639 Int'l Bhd. of Teamsters, 543 F.2d 369, 387 n. 50 (D.C.Cir.1976) (describing Cox as "a principal consultant to the draftsmen" of the LMRDA).